Trent Gateway logistics units snapped up

Demand for logistics real estate in the UK’s East Midlands region is showing no signs of slowing, according to the leasing agents of Trent Gateway which is now fully let.

Due to the especially high demand for industrial properties, particularly those that possess green credentials, the property’s landlord Northwood Urban Logistics has seen five units let in five months.

The final deals, brokered by JLL and FHP, have included MMC Materials UK Ltd which manufactures sustainable and compositable packaging and has taken 10,488 sq ft, and Upperton Pharma Solutions (Upperton), a UK-based specialist contract development and manufacturing organisation. Confident in the location, Upperton is investing circa. £15m in the design and bespoke build of its new 50,000 sq ft facility on the estate.

MMC Materials UK and Upperton join a range of other established businesses based on the 18-unit industrial site, including BW Flexible Systems, RSK Group and SRL Traffic Systems Ltd.

Northwood’s success is reflective of the high demand for space in the region. JLL’s own research has revealed that prime headline rents have risen by an average of 25.5% across the Midlands. The multi-let and mid box industrial market Spring 2022 report revealed that, in the East Midlands specifically, there remains eight months’ supply of space available, but is seeing comparatively little new speculative development. Regional demand for small units is particularly strong in the 3,000 to 5,000 sq ft and 10,000 to 20,000 sq ft range, with local and regional occupiers driving the majority of demand.

Trent Gateway’s sought-after green credentials include the likes of electric vehicle charging points; low air permeability design; warehouse skylights making up 15% of roof surface area increasing natural lighting; high performance insulated cladding and roof materials; and secure cycle parking all provided as standard.

Iain Taylor, Director at Northwood Urban Logistics said: ‘’We are very pleased to welcome our latest occupiers to the scheme. Trent Gateway has been proven to accommodate a wide range of occupiers who have been able to adapt the units for a variety of uses.”

Gemma Constantinou, industrial director at JLL East Midlands, said: “Trent Gateway has benefited from having high-quality units in a market that is increasingly calling for more space. Crucially, though, this market also understands that the need to make greener choices, in the push towards Net Zero, is only intensifying.

“The speed in which the entirety of Trent Gateway has been snapped up should be a clear, green light for developers to invest further in the East Midlands. We expect take-up to remain at a consistently high level for the next few years while the battle for availability continues at such a pace.”

Mark Tomlinson, Director at FHP, commented: “We are delighted to have delivered fully occupancy and such a strong tenant line-up at Trent Gateway, which was delivered to service a pent-up demand from occupiers who have been hampered by an undersupply of industrial property in the region. The East Midlands still has one of the lowest vacancy rates in the country, so we were not surprised to have brought forward such strong demand for the scheme.”

Located within Beeston Business Park and just one mile outside of the town centre, Trent Gateway is a 40-acre hub providing a mix of industrial and office space, all overlooking the Attenborough Nature Reserve.

 

Major UK logistics hub approved

Warrington Borough Council has approved developer Langtree’s planning application – subject to non-intervention by the Secretary of State – to develop a major new logistics hub in south Warrington, UK that will create more than 4,000 new jobs.

The £180m development, called Six56 Warrington, will provide approximately 3.1m sq ft of new warehousing and distribution space.  Its approval now unlocks £7.1m a year in new rates income for investment in local services by Warrington Council.

The development is on land bounded by junction 20 of the M6 and junction 9 of the M56 motorways. The application for the scheme followed a series of well-attended public consultation events which helped shape its final design.

The scheme will focus on providing space for logistics businesses, explained John Downes, Langtree’s group chief executive.  “It’s where the greatest demand lies and the jobs are much more diverse and better paid than people perhaps realise,” he said.

“The average salary in the sector is around £29,000 and in a scheme of this type there will be a wide variety of roles available, from entry-level up to senior technical and managerial roles. This development is about ensuring that Warrington remains a competitive and relevant economy as the world of work evolves.”

And, says Downes, it is Langtree’s ambition to ‘go one step further’, ensuring jobs in the local supply chain, too.

“The impact of our investment will be multiplied if we can engage local suppliers in the construction and operation of the scheme and we are committed to ensuring as many contracts as possible go to local firms,” added Downes.

New employment sites are needed to maintain Warrington’s position as one of the UK’s most successful local economies and continue its track record of attracting new employers and jobs to the area, the local council believes.

The scheme will now be referred to the Secretary of State to determine whether he intends to “call it in” for his own assessment.  Following approval there would be an intensive period of work involved before the construction of units could begin, including reserved matters applications, significant highway and transport improvements and public realm improvements in and around the site.

OT Group opens new centralised hub

National business supplies and services provider, OT Group – which includes the OfficeTeam, Office Depot UK & Ireland, Zen Office, and Spicers Ireland brands – has relocated to its new headquarters in Ashton-under-Lyne.

The move comes as a result of the completion of OT Group’s acquisition of parts of Office Depot UK & Ireland’s contract arm earlier this year, which is already based at the location. Further significant investment is intended for the 275,000 sq ft site, with plans to bring up to 200 new jobs into the local area.

The move will enable the business to provide a higher quality service to its customers – with the facility having the capacity to hold over 22,000 products and, using sophisticated picking technologies, achieves a 99.8% order accuracy rate.

Previously located at its central distribution centre in Birmingham, the facility will provide greater stability for OT Group’s customers through improved distribution capabilities, at a time when supply chain turbulence is at an all-time high.

Andrew Jones, CEO of OT Group, commented: “We’re thrilled to be based in Ashton-under-Lyne – the area has so much to offer, and the site is more fitting with our long-term strategy thanks to its industry-leading technology and experienced team.

“It also serves to showcase the rapid growth the Group is undertaking – and evidences where we are innovating within our industry and leading within the market, while still providing the reliability our customers need.

“And, with a ‘local first’ recruitment policy in place, we’re excited to be looking to the talent pool of Ashton-under-Lyne and the wider Manchester area to fill any newly created positions.”

The Ashton-under-Lyne facility houses advanced warehousing and distribution centre technologies, meaning that OT Group will be able to provide an even more efficient, competitive, and responsive service to its customers as it continues with its rapid growth plans.

The launch of the new flagship site coincides with the acquired parts of Office Depot UK & Ireland business’ full integration into the OT Group, where it began trading under the new Group umbrella on 27th September 2021.

 

Subscribe

Get notified about New Episodes of our Podcast, New Magazine Issues and stay updated with our Weekly Newsletter.